Fitch anticipates good things for non-residential construction in 2014
The latest Fitch Ratings report sees a pick-up for the non-residential construction sector, beginning this year but accelerating in 2014.
Fitch expects private non-residential construction to grow 2% in 2013 and 5% in 2014 thanks to increased lending and CMBS issuance. Meanwhile, public construction spending is predicted to remain largely stable this year and grow 3% in 2014.
"Institutions will continue to be selective in their lending activities in the near term, which will likely moderate growth in commercial construction," said director Robert Rulla. Regarding public construction spending, a new highway bill adds leverage for growth, but "it will take some time to start larger, longer term projects so the benefits of the new highway bill will be more evident next year."
The company stated that demand and financial performance will vary among markets and building materials companies, though weak spending will be a potential problem where public infrastructure is concerned.